Bank of England (BOE) deputy governor Jon Cunliffe claims crypto investors don’t actually understand the whole concept of cryptocurrency.
In particular, the allegations are aimed at retail investors.
He explained in a recent program of The Wall Street Journal, retail investors are at risk of incurring severe losses given that digital assets are highly speculative.
The closest example that can serve as a lesson, the collapse of the Terra ecosystem last week.
In just a few days, LUNA, which once recorded a three -digit depreciation value, was at the microscopic level, attracting the attention of the US Treasury.
Cunliffe also stressed that cryptocurrencies do not have a fixed value, fluctuate all the time according to market sentiment and should be categorized as risky securities.
So it is no wonder why crypto investing among retail investors is not considered a real financial investment.
At the time of writing, Bitcoin (BTC) recorded a jump of over 1%, trading at $ 30,409/78 but still down nearly 2% since last week.
The performance of the crypto king also prompted positive movements of several other cryptocurrencies such as Ethereum, ETH ($ 2,083.86, +2.23%), XRP ($ 0.44, +2.11%), and Cardano, ADA ($ 0.6, +2%).
The value of the crypto market has also recorded an increase of 1.02% to the level of $ 1.3 trillion.
